Consumer News & Alerts

February 12, 2007

WHY DOES COLLEGE COST SO MUCH?
When gasoline prices surged in the wake of Hurricane Katrina, many angry consumers believed Big Oil was engaging in price gouging. But as the costs of a college education have skyrocketed, few have accused Big Education of doing a little gouging of its own.

Are colleges overcharging students and parents? And if not, then why is a college education today so expensive that many can't afford it and others can do so only by racking up substantial debt? Read more in this week's cover story: Why Does College Cost So Much? But before you run, checkbook in hand, to a for-profit school like the University of Phoenix, be aware that dissatisfaction with UOP is rising rapidly. See University of Phoenix Staggers Under Growing Criticism.

And, while you're at it ... watch out for scams targeting college-bound students. All those ads for "free" financial aid and scholarship guides are intended to fleece the unwary. It's not necessary to pay for information about financial aid. We have a summary of what you need to know -- free for the reading.

MANY CHILDREN LEFT BEHIND
The U.S. Consumer Product Safety Commission's job is to enact rules to safeguard Americans from being harmed by defective products. But it can't do that today because for more than six months, the commission has had only two commissioners, not the three needed to enact new rules. The reason there are only two commissioners is that President Bush has not taken the trouble to nominate a replacement for former chairman Hal Stratton, who quit with no notice to take a high-paying job as -- what else? -- a lobbyist.

Meanwhile, no action is possible on proposed rules that would tighten standards for lead content in toys and create new safety standards for ATVs, which kill and maim thousands of children per year. Besides being unable to enact new rules, the two-member commission is also powerless to levy fines against producers of dangerous products. Cynics say the Bush Administration is paying back its friends in the ATV/snowmobile business by hogtying the commission. Some have even suggested Stratton's abrupt departure was part of a strategy to render the commission powerless for the twilight of this Administration.

Where is the outrage about this? Major news media haven't picked up our lead in reporting on this issue and members of Congressional committees with CPSC oversight responsibility simply shrug and say it's up to the White House to act. We're as concerned as anhyone with how Tim Russert felt testifying in court and with Anne Nicole Smith's demise but how about our friends in the daily press pay a little attention to the real business of government once in awhile and leave the celebrity gushing to the supermarket tabloids?

NHTSA SEEKS TO BLUNT IMPACT
Although it disputed Consumer Reports' findings that most infant car seats provide inadequate protection in side-impact collisions, the National Highway Traffic Safety Administration (NHTSA) says it plans to issue new child safety seat regulations by the end of the year. NHTSA chief Nicole Nason said side-impact standards are "under consideration."

What one might read into all of this is that Consumer Reports identified a significant safety risk but left NHTSA room to quibble about the details. Any way you look at it, there's no doubt infant restraint systems could and should be a lot safer.

Stronger Minivan Door Latches NHTSA, meanwhile, has noticed that too many children are being thrown out of the family minivan when the sliding doors pop open in accidents, so NHTSA will require an additional latch be added to the doors, beginning in 2009. Of course, minivans are rapidly becoming extinct so critics might say this amounts to closing the barn door after the barn's burned down.

More automotive news ...

• Economics 101.5 Let's see, the gas supply is rising so prices should be falling. Wrong. The average price of a gallon of unleaded regular is once again above $2 in all 50 states.

• 2007: the Year of the Import Imports set to overtake domestic automakers in U.S. sales this year.

• Nissan Altima Tops Consumer Reports' Ratings for Family Sedans Altima now ranks alongside CR's top-rated Volkswagen Passat, Honda Accord, and Toyota Camry.

• Record Amounts of Title "Washing" Flood-damaged cars being sold to unwitting consumers nationwide.

REALITY BELIES PROPAGANDA
The financial services industry has been laying down a smokescreen lately, claiming that the threat of identity theft is declining. Oh, really? Then why, one wonders, were more than one-third of all complaints to the Federal Trade Commission last year about identity theft. And why did identity theft leap to the top of the Illinois attorney general's complaint list? Why is it that every week there's a new report of a major corporation or institution losing thousands of individuals' private records? (Johns Hopkins, by the way, takes this week's honors).

Congress is getting all atwitter about the issue and is threatening to pass legislation which, not surprisingly, would most likely wind up protecting careless companies, institutions and government agencies from liability while doing little to protect those whose identity info is carelessly lost.

Cheesy Response The press gets blamed for everything, doesn't it? In Wisconsin, a printer cleverly mailed out 170,000 state tax forms with the recipients' Social Security numbers plastered on the label. The printer and the state bureaucrats tried to cover up their blunder, then reacted angrily when local news media ran stories about it after being contacted by anxious residents. "The press made the situation a whole lot worse," said printer Andy Lyke. Sure it did. Warning consumers of others' blunders is just the kind of irresponsible action the press engages in every day.

We always liked the idea of term limits and, frankly, we think the notion should be extended to government contractors, like that Wisconsin printer. Things would run a lot better if every government contractor got thrown out every five years or so and had to make a living in the real private sector, not the one that's propped up by taxpayers' hard-earned dollars. Also the nation's capitol should be moved around the country every decade or so but don't get us started on that.

Move the federal government to New Orleans for a decade and watch how fast things get put back together there. The move would also solve the traffic congestion everyone in Washington now complains so bitterly about.

ORLISTAT DANGEROUS, DOCTORS WARN
The FDA just finished assuring everyone it was going to get serious about drug safety. Then it went and gave over-the-counter approval to Orlistat, a weight-loss drug that has been implicated in pre-cancerous colon lesions. Even the drug's manufacturer concedes that diet and exercise are key to losing weight, so how does it advance the cause of public health to sell an admittedly hazardous drug over the counter?

Oh, the name? In its OTC form, orlistat will be known as "Alli," pronounced ally. The drug company wants to be your ally in losing weight, see? Sure, it does.

More health news ...

• Merck Braces for Flood of Fosamax Lawsuits Trouble is, the osteoporosis drug can destroy patient's jawbone. Merck, of Vioxx fame, now faces about 104 cases over Fosamax.

• Severe Form of Enlarged Prostate Disease Discovered Left untreated, the disorder can cause serious bladder damage.

• Autism More Widespread than Previously Thought Nearly 6.7 children out of 1,000 have indications of autism.

• Food Safety Network "Porous" ... At Best Experts warn Congress responsibility for food safety is too fragmented.

• FDA Warns Skin-Numbing Gels, Creams Can Kill Topical anesthetics can cause irregular heart beat, seizures and coma, and slowed or stopped breathing.

• FDA Clears New Breast Cancer Test "Mammaprint" tests for recurrence of cancer after treatment.

• Study: Video Games May Sharpen Vision Researchers find 20 percent improvement in test subjects who played action games.

• Balance Problems in Seniors Need to be Checked Out Dizziness, loss of balance not a normal part of aging and should not be ignored.

AIRLINE REPORT CARD
The news is not good. If airlines were kids, they'd be grounded with grades like these. There are more delays and more lost bags but fewer consumer complaints in the latest government report. Why fewer complaints? Maybe folks have just given up. Can't blame them, really.

• Stiffer Safety for Air Tour Operators Feds tighten regulations as crashes mount.

• Spirit's Baggage Tariff Irks Travelers With new surcharges, some travelers could wind up paying more for their bags than for themselves.

• Airport Screeners Join Amber Alert Network In addition to screening millions of passengers daily, screeners now asked to watch for missing children.

SCAMS & OUTRAGES

• Priestly Misdeeds Priests in Louisiana and Virginia allegedly led double lives, embezzled church funds.

• Counterfeit Check Scams Consumers and auction sellers increasingly targeted by bogus cashiers checks.

• "Net Send" Internet Advertisers Messages warned of "critical errors" in victims' computers.

• "Smiling Bob" Dietary Supplement Peddlers Agree to Refunds

• "Free Electricity" New Jersey company accused of consumer fraud.

SAFETY RECALLS

A LOVELY TIME
Yes, we know. It's almost Valentine's Day. We're out of space in today's newsletter but check back with us Tuesday or so. We'll have advice from an expert on how to find love (or a semblance thereof) without needlessly endangering your worldly goods and personal safety.

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